Valprado Industries Is Considering Purchasing a Machine That Will Produce

question 21

Essay

Valprado Industries is considering purchasing a machine that will produce plastic kitchenware.The machine would be used for five years,would cost $35,000,and would have a $5,000 residual value.It is expected to increase annual net cash inflows by $8,800.Valprado uses the straight-line method of depreciation.Using the above facts and the present value factors below,determine the following.
(a)Payback period (Round your answer to one decimal place)
(b)Accounting rate of return (Round your answer to one decimal place)
(c)Net present value of the investment based on a 12 percent minimum desired rate of return (Use parentheses to indicate a negative net present value.Round your answer to the nearest dollar).

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Definitions:

Ju/'hoansi

A hunter-gatherer group living in the Kalahari Desert, known for their extensive knowledge of the environment and egalitarian social structure.

Maya

A Mesoamerican civilization known for its advanced written language, architecture, mathematical, and astronomical systems.

Nomadic

Nomadic describes communities or individuals that move from one place to another rather than settling permanently in one location, often to follow seasonal migration patterns or in search of resources.

Traditional Societies

Communities that adhere to long-established customs, beliefs, and practices, often resisting the influences of modernization and globalization.